Producer Surplus Is Defined As

Multiple Choice

Producer surplus is defined as:

A) the difference between the price the consumer actually pays for a product and the consumer's reservation price.
B) the profit that the firm earns on each unit of a product sold.
C) the profit that the firm earns after taxes.
D) the difference between the price received by the producer and the producer's reservation price.
E) the difference between the price paid by the consumer and the price received by the consumer.